ERGON Energy can't say yet where the axe will fall after it announced major job losses last week.

Last Tuesday, Ergon briefed its industry unions about a proposal to slash 500 jobs by June 2013.

An Ergon spokesman said there was no breakdown of job losses by locality yet because many of the individual positions to be made redundant have not been determined.

"Ergon Energy has significantly reduced its capital and operational expenditure for the current regulatory period because electricity consumption and peak demand are well below levels forecast in our regulatory determination," the spokesman said.

"Demand for customer network connections is also expected to remain suppressed throughout the remainder of the current period to 2015.

"We have to make some difficult decisions to ensure we are a prudent and efficient business that delivers affordable electricity to customers."

Ergon Energy, is a Queensland Government-owned corporation which supplies electricity to 700,000 customers across a vast operating area of over one million square kilometres - around 97% of the state of Queensland

According to its 2010-2011 annual report, it has around 4700 employees located across Queensland.